Global cannabis extract market was worth USD 7.3 billion in 2019. It is expected to grow at 16.6% during the forecast period. This market is driven by the growing use of cannabis extract to treat chronic diseases such as arthritis, Alzheimer's and cancer, along with mental disorders like depression, anxiety, epilepsy, and anxiety. The market is expected to grow due to legalization of medical marijuana in many countries. This allows patients to have easy access.
The overall market growth has boomed due to the increasing use of marijuana for both medical and recreational purposes. Some countries have legalized marijuana, which has led to increased product purchases and a decline in black market sales. The countries can also expect to generate revenue by charging tax.
The treatment of many conditions such as cancer, psychological disorders, nausea and other ailments can be done with cannabis oil or tinctures. The laws regarding extracts are more permissive than those pertaining to buds or resins in terms of legality. These products will be in high demand due to their ease of use in vapor and gummies, and gradually decreasing stigma associated with smoking cannabis buds.
The market for cannabis extract will be driven by the rising incidence of cancer. According to the World Health Organization, in 2015, cancer was second on the list of leading causes of death worldwide. It claimed 8.8 million deaths. The market for medical marijuana will be driven by the growing demand for pain management therapies due to chronic pain. Due to the age restrictions and precise calculation of dosage, cannabis oil has been prescribed for children instead of marijuana buds.
The largest revenue share in cannabis extract market was held by the oil segment, which was valued at USD4.8 billion in 2019. This market segment is expected to grow at the fastest rate over the forecast period. This is due to the growing medical uses of the product. It is crucial to track the exact consumption of prescribed doses that include Tetrahydrocannabinol, CBD, and other components. The preference for cannabis oil and extracts is higher than quantifying the accuracy of smoked cannabis.
Sublingual Marijuana Tinctures are made by dissolving marijuana in alcohol. They can be taken sublingually. Tinctures work in 15 minutes. This is quicker than oils, which can take up to 45 minutes. The forecast period will see a significant increase in tinctures demand. Over the forecast period, the tinctures segment will see a 14.5% CAGR.
The product demand is expected to rise due to the changing perspective of healthcare professionals regarding safer ways of ingestion, such as oral or in-liquid form. Due to the high demand from end-use industries such as pharmaceuticals nutraceuticals, skincare and beverages, a majority of extract producers have expanded their portfolios. These products are advertised with information about the content of TCH or CBD, or only CBD for medical purposes.
Full-spectrum was worth USD 4.3 billion and accounted for the largest revenue share of the cannabis concentrates market in 2019. This market segment is expected to grow at a faster rate of over 20.0% during the forecast period. Full-spectrum extract contains all cannabinoids that can be extracted from marijuana plants. More than 100 cannabinoids are present in their original forms, apart from CBD. Full-spectrum extracts can produce an entourage effect, which is a collaboration between terpenes & cannabinoids. This enhances the healing properties cannabinoid.
Cannabis isolates, which are the most reliable form of their cannabinoids, are made by isolating and extracting. These isolates have fewer health benefits than full-spectrum cannabis extractions. These isolates also have many advantages, which has led to their increasing popularity over the years. The purest form of the isolates is negative for THC. It has no psychoactive effects due to its low/no THC content.
Because of strict regulations regarding THC in many countries the adoption of full spectrum or isolated THC is relatively low. Due to the entourage effect, doctors are prescribing medical marijuana components. The demand for full-spectrum extracts will be positive influenced by the growing pressure from the medical community to allow full-spectrum products to be legalized.
North America had the highest revenue share in 2019, and was valued at USD 6.4 billion. This is due to increased product adoption and greater use of cannabis within the region. Ten years ago, legalization was opposed by 60% of the population. Only 32% favored it. Medical marijuana was legalized across the U.S. in all 30 states, which includes Guam, Puerto Rico and Columbia. Recent statistics show that approximately 57.0% Americans support the legalization of medical marijuana, including for the treatment of pain, inflammation and cancer. Hence, legalization, increased support from the citizens and increasing product adoption for medical purposes will all help to boost regional market growth.
Europe was second in revenue share for 2019, It is the fourth-largest consumer of cannabis oil and concentrates. The strict rules and regulations surrounding the cultivation and sale of cannabis oil and concentrates in Europe may hinder their growth. Australia, Germany and Poland are also promising markets for marijuana.
Israel is expected to grow at a 34.4% CAGR between 2020 and 2027. This will make it a highly lucrative market during the forecast period. This growth can be attributed to a number of factors, including innovation, increased research activity and well-developed ecosystems. Liberal government policies also play a role. In January 2017, the government spent approximately USD 2.13 million on 13 research projects to study the effects of cannabis on conditions such as rejection of transplanted organs and metabolic syndrome. The market for medical marijuana will grow over the forecast period by increasing R&D investments.
Major players in the cannabis market include Aphria Inc., Canopy Growth Corporation, Aurora Cannabis, Maricann Inc., Organigram Holdings Inc., The Cronos Group, and TilrayTikun Olam, Ltd. To significantly increase their market share, these players have formed strategic partnerships with extractors as well as other parties in the value-chain. Canopy Growth Corporation partnered with Danish Cannabis ApS to create a new joint venture, Spectrum Denmark ApS. The venture will help the company to expand its presence in Europe.
This report provides a forecast of revenue growth at country level and an analysis of industry trends in each sub-segment from 2016 to 2027. Grand View Research, Inc. analyzed the global cannabis extract market by extract type, country, and product.
Product Outlook (Revenue USD Million, 2016-2027)
Oils
Tinctures
Extract Type Outlook (Revenue USD Million, 2016-2027)
Full Spectrum
Isolates
Country Outlook (Revenue USD Million, 2016-2027)
The U.S.
Canada
Germany
Italy
Netherlands
Israel
Australia
Argentina
Colombia
Mexico
Croatia
Poland
Czech Republic
Switzerland
Uruguay
Chile
b. Global cannabis extract market was valued at USD 7.3 billion in 2019, and is forecast to grow to USD 9.7 billion by 2020.
What is the market growth for cannabis extract?b. Global cannabis extract market will grow at a compound annual rate of 16.6% between 2020 and 2027, reaching USD 23.7 billion in 2027
Which market segment had the largest share of cannabis extract?b. With a share of 66%.5% in 2019, the oil segment dominated cannabis extract market. This can be attributed to the ease of access and low cost of the product.
What are the major players in the cannabis extract market?b. Canopy Growth Corporation, Aphria Inc., Aurora Cannabis; Maricann Inc. and Tilray are some of the key players in the cannabis extract market. Tikun Olam Ltd. is another.
What are the driving factors for the market for cannabis extract?b. The market is driven by several key factors, including legalization in different countries, preference for cannabis oil, tinctures, as well as the adoption of medical marijuana to treat chronic diseases such arthritis, anxiety, or Alzheimer's.
Up Market Research published a new report titled “Cannabis Extract Market research report which is segmented by Product (Oils, Tinctures), by Extract Type (Isolates, Full Spectrum), By Players/Companies Canopy Growth Corporation; Aphria Inc; Aurora Cannabis; Maricann Inc; Tilray; Organigram Holdings Inc; Tikun Olam, Ltd; and The Cronos Group”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Cannabis Extract Market Research Report |
By Product | Oils, Tinctures |
By Extract Type | Isolates, Full Spectrum |
By Companies | Canopy Growth Corporation; Aphria Inc; Aurora Cannabis; Maricann Inc; Tilray; Organigram Holdings Inc; Tikun Olam, Ltd; and The Cronos Group |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 203 |
Number of Tables & Figures | 143 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Product (Oils, Tinctures), by Extract Type (Isolates, Full Spectrum).
Cannabis Extract Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Cannabis Extract Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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